8-KMaterial AgreementsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (Sep 17, 2012)

Filed September 17, 2012For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) announced the completion of a public offering of $350 million in aggregate principal amount of 4.375% Senior Notes due 2022. The company received net proceeds of approximately $347.2 million from this offering. These notes are unsecured general obligations of the company and are guaranteed by substantially all of its homebuilding subsidiaries. The offering aims to strengthen the company's financial position and provide capital for its operations. Investors in these notes will receive semi-annual interest payments starting March 15, 2013, with the notes maturing on September 15, 2022. The indenture includes provisions for optional redemption, a change of control clause requiring a repurchase offer under specific circumstances, and standard events of default. This move signals D.R. Horton's strategy to secure long-term financing, likely to support its ongoing business activities and growth prospects in the housing market.

Key Highlights

  • 1Completion of a $350 million public offering of 4.375% Senior Notes due 2022.
  • 2Net proceeds of $347.2 million received from the note offering.
  • 3Notes are general unsecured obligations of D.R. Horton, Inc.
  • 4Substantially all homebuilding subsidiaries are guarantors of the notes.
  • 5Interest rate of 4.375% per annum, payable semi-annually.
  • 6Maturity date set for September 15, 2022.
  • 7Includes provisions for optional redemption and a change of control repurchase offer.

Frequently Asked Questions

This 8-K filing reports on D.R. Horton's entry into a material definitive agreement, specifically the completion of a public offering of $350 million in 4.375% Senior Notes due 2022.

The notes carry a 4.375% annual interest rate, payable semi-annually, with a maturity date of September 15, 2022. They are general unsecured obligations of the company and are guaranteed by its homebuilding subsidiaries.

While the filing doesn't explicitly state the use of proceeds, such offerings typically provide companies with capital for operations, potential acquisitions, debt repayment, or general corporate purposes, aiming to strengthen their financial position.

In the event of certain change of control events coupled with a ratings downgrade, D.R. Horton is obligated to make an offer to purchase the notes from holders at 101% of their principal amount, plus accrued interest.